India Enforces Fuel Purchase Limits Amid Global Supply Chain Tensions

India has restricted commercial fuel buyers from purchasing gasoline and diesel from retail stations and limited daily diesel purchases to 200 liters. This aims to prevent local shortages and maintain fair prices amid Middle East conflict-related supply chain disruptions. The measures target price arbitrage and profitability for state retailers.

In a strategic move to navigate the ongoing global supply chain disruptions caused by the conflict in the Middle East, India has implemented new restrictions on fuel purchases. Commercial buyers are now barred from purchasing gasoline and diesel from retail stations.

In a directive issued on Thursday, retail fuel station dealers are limited to selling no more than 200 liters of diesel per customer or vehicle per day. This measure targets trucking companies capitalizing on lower prices at state-run retail outlets, leading to fuel shortages.

The restrictions, effective for an initial period of 90 days, aim to ensure equitable distribution and prevent diversion and hoarding. The government highlights the strain on global petroleum supply chains and reduced profitability for state retailers due to higher domestic sales at subsidized rates.